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Samsung SDI, Stellantis to build 2nd joint battery plant in US
Samsung SDI CEO Choi Yoon-ho, left, and Stellantis Chief Operating Officer Mark Stewart shake hands after signing an agreement to establish a joint venture in the U.S. state of Indiana in this May 2022 file photo. Courtesy of Samsung SDI
By Park Jae-hyuk
By Park Jae-hyuk
Samsung SDI and Stellantis, which established a joint venture last year, signed a memorandum of understanding to build their second electric vehicle (EV) battery plant in the United States, the Korean firm said Monday.
Slated to start production in 2027, the StarPlus Energy joint venture's new plant aims to have an initial annual production capacity of 34 gigawatt-hours (GWh).
The joint venture's first plant, located in Kokomo, Indiana will begin production in 2025.
Given that the annual production target of StarPlus Energy's first factory was adjusted to 33 GWh from an initial target of 23 GWh, Samsung SDI will be able to provide Stellantis with 67 GWh of EV batteries a year after the second factory is built.
“By establishing the joint venture with Stellantis last year, we laid a solid groundwork for marking our presence in North America,” Samsung SDI CEO Choi Yoon-ho said. “The second plant will accelerate our market penetration into the U.S. and help Stellantis push forward the U.S. transition to an era of electric vehicles by supplying the products featuring the highest levels of safety and quality.”
Stellantis CEO Carlos Tavares expects the new facility to contribute to reaching the company's target of introducing at least 25 new types of EVs in the North American market by 2030.
“We are continuing to add more capacity in the United States together with our great partner Samsung SDI and laying the next steps to reaching our carbon neutrality commitment by 2038,” Tavares said.
Both companies did not disclose the location of the second factory. They also kept confidential the size of their planned investments in the new production plant.
“The location of the new facility is currently under review and further details will be shared at a later date,” they said in a press release. “The transaction is subject to the execution of definitive documentation.”
Industry officials, however, expect the second factory to be located in Indiana, where Samsung SDI will also build a joint battery plant with an annual production capacity of 30 GWh, in cooperation with General Motors.
Considering that Samsung SDI and GM agreed last month to invest $3 billion in their joint factory, the size of investments in StarPlus Energy's new production plant is also expected to exceed $3 billion.